IRA Transfer

DEFINITION of 'IRA Transfer'

The transfer of funds from an Individual Retirement Account (IRA) to another type of retirement account or bank account. IRA transfers are split into two categories: direct and indirect. A direct transfer involves moving the assets, such as stocks and mutual funds, currently held in an IRA account and moving them to a different account without liquidating them. An indirect transfer involves liquidating the assets in the current IRA account and using the cash to open another IRA account.

INVESTOPEDIA EXPLAINS 'IRA Transfer'

Typically, an IRA transfer is from one IRA account to another. Because the use of IRA assets has tax implications, investors may be taxed if funds are withdrawn and not reinvested. Investors using the indirect method are given a fixed period of time, usually 60 days, in which the funds have to be invested in a new IRA before taking a tax hit.

RELATED TERMS
  1. IRA Plan

    A plan that individuals may establish to arrange and plan for ...
  2. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  3. Traditional IRA

    An individual retirement account (IRA) that allows individuals ...
  4. Roth IRA

    An individual retirement plan that bears many similarities to ...
  5. IRA Rollover

    A transfer of funds from a retirement account into a Traditional ...
  6. Discretionary Investment Management

    A form of investment management in which buy and sell decisions ...
Related Articles
  1. Tax Treatment Of Roth IRA Distributions
    Taxes

    Tax Treatment Of Roth IRA Distributions

  2. Avoiding IRS Penalties On Your IRA Assets
    Taxes

    Avoiding IRS Penalties On Your IRA Assets

  3. Transfer Retirement Savings When You ...
    Retirement

    Transfer Retirement Savings When You ...

  4. Did Your Roth IRA Conversion Pass or ...
    Retirement

    Did Your Roth IRA Conversion Pass or ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...